Suppose a perfectly competitive cotton farmer can produce 10 containers of cotton at an output at which marginal cost equals marginal revenue. The price per container of cotton is $100 and the average total cost is $75. What is the profit or loss that this cotton farmer is earning?
A. $250
B. $750
C. -$25
D. $150
Answer: A
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Wealth is the same as:
A. assets. B. capital gains. C. net worth. D. savings.
The figure shows the market for books before and after a sales tax is introduced. The tax on books is ________ a book, buyers pay ________ of tax per book, and the government's tax revenue is ________ a week
A) $1.20; $0.80; $128 B) $0.80; $1.20; $12 C) $0.40; $0.40; $4 D) $1.20; $0.80; $12
In 1989, Sears and Roebuck closed its stores and remarked every price in its stores to reflect a new "lower everyday" pricing strategy. Sears must have believed at that time that
A) the profit from extra sales were less than additional menu costs. B) the menu costs were less than the gain in profits from additional sales. C) extra liquidity was more important than menu costs. D) B and C.
Borrowers who took out mortgages in the 1960s:
A. were harmed by the unexpected low inflation rates of the 1970s. B. benefited from the unexpectedly high inflation rates of the 1970s. C. were harmed by the unexpectedly high inflation rates of the 1970s. D. benefited from the unexpected low inflation rates of the 1970s.